New management of Danamon to keep old lending strategies

Rendi A. Witular, The Jakarta Post, Jakarta

The new management of Bank Danamon has pledged it will maintain lending strategies laid out by the previous team, focusing on loans for the consumer, commercial, and small and medium enterprise (SME) sectors.

Newly appointed bank president Francis Andrew Rozario said that the country's fifth largest bank had been successful in these areas.

"We think Danamon is on track to achieve the plan that was developed by the (previous) management. And we would like to continue the success made in these areas," Rozario announced after an extraordinary shareholders meeting on Monday.

Analysts have said that the move by the publicly listed bank to focus on loans for these sectors was made amid the huge risk in channeling credit to the corporate sector.

Around 79 percent of the bank's nonperforming loans last year, equal to around Rp 635 billion (US$77.9 million), was linked to the corporate sector.

The shareholders meeting was held to reshuffle the bank's management after a new consortium led by Singapore's Temasek Holdings Pte. Ltd. became the majority owner of the bank.

The consortium, called Asia Financial Indonesia, bought a 51 percent stake from the Indonesian Bank Restructuring Agency (IBRA) for Rp 3 trillion last month.

Rozario, which represents the new owner, was recruited from Citibank. His last position during his 28-year career at the bank was as global head of the SME and commercial section for Citigroup International in London.

He succeeded Arwin Rasyid, who led Bank Danamon for about three years.

Shareholders also appointed Emirsyah Satar as vice president and reappointed four other directors.

Satar is currently the finance director of Indonesian flag carrier Garuda Indonesia.

The new management still has to undergo screening by the central bank before officially taking up their posts.

Rozario also hinted that the consortium might increase its stake in Bank Danamon by purchasing the remaining shares held by IBRA.

The agency still owns more than 48 percent of the bank, and is planning to unload around 20 percent in the near future.

When asked whether the bank would be negatively impacted by the current fall in interest rates, Rozario explained that it would not likely affect Danamon because the bank's business had been broadened to include diversified products.

Eyebox

Danamon's new line up

President director : Francis Andrew Rozario Vice president director : Emirsyah Satar Directors : Jerry Ng

Muliadi Rahardja

Gatot Mudiantoro Suwondo

Prasetio

Anika Faisal

President commissioner : Sim Kee Boon Vice president commissioner : I Nyoman Sender Commissioners : Sri Adiningsih

Sumarno Surono

Milan Robert Shuster

Harry Sukadis

Jimmy Phoon Siew Heng

Edwin Gerungan

Rajan Raju Kankipati

Gan Chee Yen